Obama: Growth Is Still Sluggish Despite MASSIVE Stimulus
The U.S. is currently applying MASSIVE "fiscal" stimulus. We have run $1.2 Trillion deficits for several years now, which is 3 TIMES more than ever before in history. When an economy is dumping $1.2 trillion more into people's pockets than it's taking OUT of their pockets, the result is usually rampant economic growth of 6 to 9% GDP...
... yet we're only experiencing a sluggish 2% growth in GDP.... WHY??
The U.S. is currently applying MASSIVE "monetary" stimulus. The federal reserve has driven short-term, fed-funds down to 0% (yes... ZERO) and is running the QE3 printing presses full out. THIS AMOUNT OF STIMULUS IS UN-PRECEDENTED... BY A LONG SHOT! Normally, this amount of monetary stimulus would produce rampant economic growth of 6 to 9% GDP...
... yet, it's barely 2%.... WHY??
The answer is that businesses and corporations won't INVEST anything. Capitalism in America has essentially SEIZED UP.
Every day of every week of every month, Barack Obama gets behind a microphone and tells the owners of these businesses and corporations that he's going to tax the CR@P out of them... especially if he wins a second term and never has to face the voters AGAIN.
The result: Investment capital is FLEEING for cover. Just in the past 60 days, 2 Billionaires have fled the country... Facebook's Edwardo Saverin took his Facebook IPO money... $3 billion... and fled to capital-friendly Singapore. Apple's Steve Wozniak took his $Billions to New Zealand.
Those who aren't leaving the U.S. are running for cover in un-productive assets like Gold and Treasury bonds instead of investing in jobs-producing industry. Even small investors are joining the effort to escape Obama's war on capitalism as "emerging market" mutual funds surge with investment dollars while "domestic stock" funds experience capital outflows. Huge amounts of capital are flowing to the far east (see WSJ article from Wednesday).
NO AMOUNT of "stimulus" can overcome the massive scale of "capital flight" that Barack Obama has unleashed. It's really no mystery... virtually EVERY country that has been ruled by an "anti capitalist" before us has experienced a similar industrial collapse... Chavez's Venezuela and Fidel Castro's Cuba among them. In fact, both Hugo Chavez and Raul Castro's daughter SUPPORT Obama's bid for a 2nd term.
On it's current trajectory, our country's "debt-to-GDP" ratio will surpass that of Greece within 3 to 4 years time. Because the next president's term is 4 years in length, that means that the CURRENT ELECTION is the most CRITICAL of out time.
We all know what kind of America our Grandfathers left for us... what would our Grandfathers say if they could see what kind of America we're leaving for OUR kids?
Please, America... DON'T continue following the path that Greece followed... WE'RE BETTER THAN THAT. 4 more years under the boot of Obama, and we're going down HARD.
Please, spread the word. 90% of Americans have NO UNDERSTANDING of the impact of "capital flight", yet it's the most important economic concept of our time.
Money is fleeing overseas (Google Apple's Steve Wozniak or Facebook's Edwardo Saverin to see what I mean) or stampeding into gold, bonds, treasuries and other "unproductive" assets that don't build businesses and employ americans.
Corporations are sitting on record amounts of cash, or "shrinking" by buying back their own stock rather than expanding and hiring people. Those with foreign earnings are hoarding it overseas to keep from paying the U.S.'s highest-in-the-world corporate taxes by bringing it home to us.
"domestic stock" mutual funds have been losing assets for years while bond funds and "emerging markets" mutual funds grow their invested assets.
"Capital Flight" has been the biggest detriment to socialist countries like Cuba and Venezuela over the decades... who ever thought it would happen HERE, in AMERICA?
Cuba's Raul Castro and Venezuela's Hugo Chavez are ardent supporters of Barack Obama... WHY?
Tomorrow is the most important election our our lifetimes... and our Children's.
Actually, you are missing the effects of the financial seize up and housing Crash of '08. The savings of the average household dropped a third. Americans were much too leveraged as well given the newer, real, and much lower value of their houses. Many other asset classes were worthless overnight. The Greenspan asset bubbles in housing and stocks had distorted the economy. Today whole classes of jobs have almost disappeared..
Businesses invest for demand, not the trickle down fantasy that's really a cover story for redistributing wealth upwards. Trickle down loots the economy and the money ends up in offshore accounts, offshore investment., and shocking consumption. Stimulus done was mostly used to retire debt and the import economy just sent the rest offshore.
The cumulative Bush II trade deficits 2001-2009 were a cumulative total of over $6 trillion compounded by Bush II borrowing so much of it back to fund his off the books wars, government bloat, and trickle down program. Borrowing foreign money on such a scale for wars and redistribution to wealthy people is unprecedented in US history.
Most of the stimulus has been used to broadly deleverage the economy. Consumers cut spending to pay down debt, especially high interest debt. In fact consumers are ramping up spending at last as a result. The economy is showing signs of recovery in demand. The Republican war on Obama has prevented normal work programs and the like, and they have been inserting as much uncertainty into the business investment environment as they could..
Sandy will revive the economy through 2013. Whoever is President will claim the credit, except that Romney's plans for more debt, unemployment, and wars may short circuit the process. He is, apparently, Bush III. His Tea Party faction is so ignorant of the world that they are focused only on their war with the USA. China outfoxes them with pathetic ease.
... such language is simply laymans terminolgoy for "keynsianism", which is what everybody nowadays thinks is the ONLY way to achieve growth.
But, when you look at successful economies like Singapore, Hong Kong, Germany, etc, they are creating successful economies by incentivizing companies to expand WHETHER OR NOT the domestic demand exists within those economies to accomodate it. We call that "supply side" economics and it works in virtually EVERY society that applies it correctly.
Your term "trickle-down" is a slang term used by socialists to counter the fact that capitalism is the most powerful engine behind growth and wealth creation that exists today. America is currently experiencing VERY SLUGGISH growth, despite HUGE fiscal stimulus and MASSIVE monetary stimulus because the engine of capitalism has been SHUT DOWN by Obama's constant threats to tax the CR@P out of anybody with any investment capital to spend on jobs-creating industry.
Maguro, socialism does NOT WORK. Look at ANY leader of a socialist country that is supporting Obama's candidacy... Cuba's Raul Castro... Venezuela's Hugo Chavez... each with poor, failing socialist economies and each vocal supporters of Barack Obama.
Castro and Chavez like Obama because he shares their philosophy of anti-capitalism.